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HSBC rebrands, expands its SVB UK buy as HSBC innovation banking
June 13, 2023
Acquired by HSBC in an emergency sale for just £1 in March as SVB was melting down, SVB UK is now getting a rebrand and expansion under its new owner. Today the banking giant launched HSBC Innovation Banking, a new unit focusing on banking services to the startup, investor and wider tech community.
Rumored for weeks leading up to today, and now officially announced at the kick-off to London Tech Week, the new division technically a subsidiary of HSBC UK will be bigger than just the SVB UK assets: HSBC has added teams in the U.S., Israel and Hong Kong to the operation, with more than 700 people employed in the operation. For now, it sounds like the clientele is mostly U.K. some 3,000 customers in all out of its home country, HSBC said.
The firm sets up arch competition between former bedfellows: First Citizens acquired the majority of SVB’s banking operations, which were in the U.S. and included some $72 billion in deposits and loans and had been operating under the name SVB Bridge Bank after holding company SVB Financial collapsed.
The two are going out of the gate in true competitive style: First Citizens is currently suing HSBC for poaching SVB staff specifically people like David Sabow. who had been the head of SVB in the U.S. Sabow will now lead HSBC Innovation Banking out of the U.S. It also recruited what appears to have been the whole team of SVB Israel: Led by David Cohen, it also includes his whole team of Gadi Moshe, Alon Oz, Tamir Efrati, and Meir Slobodov, plus some 20 others. Indeed, that lawsuit was likely filed in anticipation of the announcement and push made official today.
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